Interesting points.I cannot disagree with them from a real world...

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DavoMagic

16,779 Posts.

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12/11/19

13:08

Post #: 41377464
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Originally posted by usc75: ↑

No Solutions In Sight For Australia's Deep, Long Economic Recession!

12th Nov 2019: Here's Why?

1. Tax Policies: Not working. According to major banks (if they can be believed?), tax refunds are being used to reduce household debts.

2. Monetary Policy Of Slashing Interest Rates: Not working, apart from creating a bigger housing bubble.

3. Retail Sales: worst ever.

4. Iron Ore Price: Once saviour of ScoMo's Budget Surplus, now a thing of the past. Price has crashed from $123/tonne to < $79.

5. Wages Theft: running rampant...as are workers trying to catch-up with little left.

6. Banker's Theft: nothing's changed, post Hayne BRC. Worse than ever. e.g AMP is still ripping-off the dead! e.g. Westpac's highly profitable money laundering market is under ASIC challenge!

7. Utility Prices: running riot. e.g. power bills.

8. Trust-n-Confidence: getting trashed by day.

Summary: Poor, being vast majority plus also of spenders, getting poorer. Fiscal & Monetary policies not stimulating economic activity.
Monthly economic data only confirms what people with on the ground already know: life is getting a lot lot worse.

PS: Fool's Gold: ASX...

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Interesting points.

I cannot disagree with them from a real world perspective.

Living in main street the logic is in sync with what I see on the streets.

Point 1 is an interesting one.

The tax cuts supposedly going to mortgages. Banks would like that but cannot see it would not be true.
With low interest rates prices rise and past household purchase loans are locked in at historical cost.

With low interest rates though, prices rise especially on consumables so less consumption makes sense as things get expensive. Consequentially, people with bigger rates on loans directed to pay off mortgages so there are a number of reasons why there would be low business activity and extra funds go to paying off mortgages!!

Last edited by DavoMagic: 12/11/19
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